These are options to buy land (real property). We also have an option suitable for intellectual property (set up for a domain name) and one suitable for “goods” (set up for a horse).
To understand all these options and variations, please read our free information pages. Part 1 deal with basics; Part 2 with variations.
When to use:
All these contracts will take effect to create a valid option to buy land.
The standard version PR303 is comprehensive and suitable for dealing with a land owner who is happy with legal documents, or with his solicitor.
PR301 is as PR303, but with built-in provision for an extension of the option period in exchange for an additional payment to the Seller, thus rewarding him for waiting longer.
PR302 is as PR303, but with built-in provision for increasing the exercise price in proportion to the increased value of the land, thus returning a “fair” proportion of the increase to the seller, regardless of the level of success of any scheme.
PR304 is as PR303, but with warranties and “legal” provisions reduced. This recognises that many land owners may be reluctant to sign an agreement which appears too long and legalistic.
PR311 is a conditional contract - the entire deal is under contract and both sides are bound - subject only to one or more conditions being met. The most usual condition is a grant of planning permission.
These agreements are suitable for any type of land - field, farm, shop, garage, house, derelict site, etc
The agreements include the following provisions:
- All the variable matters in one place for ease of completion;
- The essence of the agreement;
- Calculation of price or additional price or extended option - PR301 and 302 only
- Provision for buyer to nominate the purchase to someone else;
Buyers warranties;
- Sellers warranties as to the current planning status of the land;
- Confidentiality
- Indemnities - except PR304
- a director’s guarantee, in case the seller is a company - except PR304
inclusion of any unregistered rights over adjacent land - except PR304
All these agreements include a notice by letter to exercise the option
